German pharmaceuticals giant said it expects a modest on-year increase in 2016 sales

LEVERKUSEN, Germany—German pharmaceuticals giant Bayer AG on Thursday outlined cautious guidance for 2016, even as positive currency effects and gains from litigation more than doubled net profit for the fourth quarter of 2015.

The company, which on Wednesday appointed management board memberWerner Baumann to succeed Marijn Dekkers as chief executive from May, said it expects sales of more than €47 billion for the current fiscal year, compared with €46.32 billion ($51 billion) in 2015. Bayer said it plans to increase earnings...